Archives: climate

China is advancing its electricity market reform as renewable energy deployment accelerates. The National Development and Reform Commission and the National Energy Administration issued new “Basic Rules for the Medium- and Long-Term Electricity Market”, strengthening the role of long-term contracting and introducing more flexible trading arrangements, cross-provincial transactions, and clearer participation rules for new market actors. At the same time, China is expanding market-based electricity pricing by removing fixed time-of-use tariffs in several provinces and refining capacity payment mechanisms for dispatchable power and storage.

With the adoption of China’s first comprehensive “Ecological and Environmental Code” on 12 March 2026, the country takes a significant step toward strengthening its legal framework for environmental governance. Entering into force on 15 August 2026, the Code integrates existing legislation while introducing new legal provisions for emerging areas such as green and low-carbon development.

Issued on 8 April 2026 by four Chinese authorities, the “Action Plan for Promoting the Mutual Empowerment of AI and Energy” shifts from one-way AI deployment in energy to two-way coordinated growth. It aims to ensure that AI computing infrastructure is supplied with clean power, while using AI to make the energy system smarter and more efficient. The plan lays out measures for green data centre power supply and expanded use of AI across grids, renewables, storage and fossil energy sectors. With pilot scenarios launched in June 2026 and milestones for 2027/2030, it seeks to establish a complete AI-energy industrial ecosystem.